FX.co ★ China Returns to Global Debt Markets with USD 4B Bond Offering

China is gearing up to secure approximately USD 4 billion through a dual-tranche dollar bond offering, just a week following its temporary pause in the trade conflict with the United States, as reported in a term sheet viewed by Reuters. The offering comprises a three-year bond pegged at roughly 25 basis points above U.S. Treasuries and a five-year bond at about 30 basis points over Treasuries. Although the raise is capped at USD 4 billion, investor demand has skyrocketed, with the order book surpassing USD 65 billion, as indicated by a bookrunner's communication. This issuance represents China's largest dollar-denominated bond offering in four years. Last year, China procured USD 2 billion through dollar bonds issued in Saudi Arabia, marking its inaugural issuance in that region.